In the latest fallout over an illegal no-hire scheme by Silicon Valley companies, an Apple shareholder is suing CEO Tim Cook and other company directors, including the estate of the late Steve Jobs.
According to a complaint filed in San Jose, the [company]Apple[/company] executives harmed the company by promoting the scheme, which involved a web of agreements in which companies agreed not to hire each others’ employees, and by failing to disclose government investigations.
“As a result of its illegal agreements, Apple’s reputation has been harmed. Further harm has come from the loss of innovation which occurred because of the illegal agreements […] Defendants impeded technological and economic growth at Apple by entering into illegal non-solicitation agreements .. which suppressed high-velocity labor by squelching flexibility and information diffusion,” claims the suit.
The case, filed by Apple shareholder Andre Klein, is known as a “derivative suit.” These are a type of corporate lawsuit in which shareholders take…
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